STANDPOINT OF THE TAXPAYER.
Nor, so far as the present offer is concerned, is this argument very much impaired by the fact that the proposals seem more advantageous to the investor than to the Exchequer and the taxpayer. The annual debt service will be increased rather than lessened by the scheme, and assuming -for the moment that all holders of the maturing Debt were to convert, there will be a material addition to the dead-weight debt of the nation. I do not think that this idea will militate against the success of the present Conversion operations, but the Chancellor of the Exchequer will be well advised in recognizing that sooner or later these are points which must affect any long view of the pros- pects of national Government stocks in the market. And until there has been not only a material appreciation in Government securities, but until there is also antic". pation of a further rise, big conversion schemes profitable to the taxpayer are impossible.
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